LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 21, 2009 TO: Honorable Byron Cook, Chair, House Committee on Environmental Regulation FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3374 by Deshotel (Relating to permits for air contaminant emissions of stationary natural gas engines.), As Introduced No significant fiscal implication to the State is anticipated. The bill would require the Texas Commission on Environmental Quality (TCEQ) to issue a standard permit or permit by rule for stationary natural gas engines. The natural gas engines would include a natural gas internal combustion engine, natural gas stationary internal combustion reciprocating engine, and natural gas turbines. The permit by rule or standard permit could consider geographic location including proximity to non-attainment areas, total annual hours of operation, technology used, type of fuel, and other emission control policies of the state. The TCEQ would be prohibited from distinguishing between the end-use functions powered by stationary natural gas engines and the emission limits would be set in terms of air contaminant emission per unit of total energy output. Productive use of the engines waste heat recovered as thermal energy would be used in determining the engines emissions per unit of energy output. The TCEQ reports that passage of the bill would not be expected to add or subtract significantly to the responsibilities of the agency. However, the agency would be required to implement the provisions of this bill in accordance with federal law; thus, the TCEQ would be required to submit the statutory and rule changes required to implement the bill as revisions to the State Implementation Plan for approval by the Environmental Protection Agency. This function is not anticipated to result in a significant cost to the agency. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:582 Commission on Environmental Quality LBB Staff: JOB, SD, TL LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 21, 2009 TO: Honorable Byron Cook, Chair, House Committee on Environmental Regulation FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3374 by Deshotel (Relating to permits for air contaminant emissions of stationary natural gas engines.), As Introduced TO: Honorable Byron Cook, Chair, House Committee on Environmental Regulation FROM: John S. O'Brien, Director, Legislative Budget Board IN RE: HB3374 by Deshotel (Relating to permits for air contaminant emissions of stationary natural gas engines.), As Introduced Honorable Byron Cook, Chair, House Committee on Environmental Regulation Honorable Byron Cook, Chair, House Committee on Environmental Regulation John S. O'Brien, Director, Legislative Budget Board John S. O'Brien, Director, Legislative Budget Board HB3374 by Deshotel (Relating to permits for air contaminant emissions of stationary natural gas engines.), As Introduced HB3374 by Deshotel (Relating to permits for air contaminant emissions of stationary natural gas engines.), As Introduced No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would require the Texas Commission on Environmental Quality (TCEQ) to issue a standard permit or permit by rule for stationary natural gas engines. The natural gas engines would include a natural gas internal combustion engine, natural gas stationary internal combustion reciprocating engine, and natural gas turbines. The permit by rule or standard permit could consider geographic location including proximity to non-attainment areas, total annual hours of operation, technology used, type of fuel, and other emission control policies of the state. The TCEQ would be prohibited from distinguishing between the end-use functions powered by stationary natural gas engines and the emission limits would be set in terms of air contaminant emission per unit of total energy output. Productive use of the engines waste heat recovered as thermal energy would be used in determining the engines emissions per unit of energy output. The TCEQ reports that passage of the bill would not be expected to add or subtract significantly to the responsibilities of the agency. However, the agency would be required to implement the provisions of this bill in accordance with federal law; thus, the TCEQ would be required to submit the statutory and rule changes required to implement the bill as revisions to the State Implementation Plan for approval by the Environmental Protection Agency. This function is not anticipated to result in a significant cost to the agency. The bill would require the Texas Commission on Environmental Quality (TCEQ) to issue a standard permit or permit by rule for stationary natural gas engines. The natural gas engines would include a natural gas internal combustion engine, natural gas stationary internal combustion reciprocating engine, and natural gas turbines. The permit by rule or standard permit could consider geographic location including proximity to non-attainment areas, total annual hours of operation, technology used, type of fuel, and other emission control policies of the state. The TCEQ would be prohibited from distinguishing between the end-use functions powered by stationary natural gas engines and the emission limits would be set in terms of air contaminant emission per unit of total energy output. Productive use of the engines waste heat recovered as thermal energy would be used in determining the engines emissions per unit of energy output. The TCEQ reports that passage of the bill would not be expected to add or subtract significantly to the responsibilities of the agency. However, the agency would be required to implement the provisions of this bill in accordance with federal law; thus, the TCEQ would be required to submit the statutory and rule changes required to implement the bill as revisions to the State Implementation Plan for approval by the Environmental Protection Agency. This function is not anticipated to result in a significant cost to the agency. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 582 Commission on Environmental Quality 582 Commission on Environmental Quality LBB Staff: JOB, SD, TL JOB, SD, TL